Under the pressure of over production capacity, poor domestic demand and fierce export situation, China's citric acid faced development bottleneck. Those problems in development indicate that citric acid's production structure needs to be adjusted immediately. Currently, citric acid also faces RMB's graduation, the strict environmental supervision and other kinds of pressure. With these problems on the way, the structure adjustment will definitely be very difficult.
The key problems that block the development of China's citric acid are over production capacity, the huge consumption of grain and the strict government policy. Besides, citric acid industry is strictly controlled and limited by our national environmental protection policy, which means companies that can't match the environmental protection policy will be forbidden to production citric acid. With this policy, the citric acid manufacturers will definitely be less and less.
In the past, the production coat, raw material cost and labor cost are very low. Therefore, the price is very competitive in the international market. While at present, China's grain price is almost the same as the global market. The price increase of corn is inevitable. Other raw materials' price like coal and sulfuric acid has always been at the high side. Labor and environmental protection cost are also higher and higher. So the production cost increased a lot. Oversea market's high duty also worsens the price advantage of China's citric acid. In order to keep the oversea market, it's important to seek new competitiveness and change price competition to brand competition.
Since China's citric acid mainly relies on export, it is necessary for suppliers to pay more attention to the domestic market. On the other hand, it's also very important to change the export model of huge quantity and low price. China's citric acid industry now possesses mature production technology. Some capable enterprises can consider taking the advantage of cheap raw material and huge market to go out. It not only conforms to the direction of our nation's structure adjustment, but also the inevitable course for the future development of citric acid.